UN FINANCES: UNITED STATES SINGLED OUT FOR UNPAID

UNCLAS USUN NEW YORK 001075 SIPDIS DEPARTMENT FOR IO/MPR, WHA/CCA E.O. 12958: N/A TAGS: PREL AORC KUNR CU SUBJECT: UN FINANCES: UNITED STATES SINGLED OUT FOR UNPAID ASSESSMENTS REF: USUN NEW YORK 993 ¶1. Summary: In formal session on November 6, UN Controller Jun Yamazaki presented a financial update to the General Assembly (UNGA) Fifth Committee (Administrative and Budgetary). Despite intervening payments, the UN's financial situation remains mixed, and may have to borrow from the reserve fund in the next several weeks. In near unison, delegations repeated criticism of the United States for not paying "in full, on time, and without conditions." USDel's statement (interrupted by Cuban histrionics) highlighted recent payments and promised more on the way. End Summary. ¶2. Yamazaki reported on assessments, available cash resources, and the UN's outstanding debt to Member States. The financial position of the UN remains fragile. This report, Improving the Financial Situation of the UN (A/63/514),is the Secretariat's documentation of Under Secretary-General Angela Kane's oral presentation on October 28 (reftel). Since Kane's report, the governments of Angola, Jordan, Peru, the United Arab Emirates, and the United States have made payments. End-of-year cash balances are projected to be lower this year for the regular budget and peacekeeping operations (PKOs),but higher for the international criminal tribunals (ICTs) and the Capital Master Plan (CMP). The USG owes 94 percent of the outstanding assessments. As a result, the Secretariat may need to borrow USD 148 million from reserve accounts to pay for regular budget activities. ¶3. The Committee heard 19 reactions from representatives of France (on behalf of the EU),Antigua and Barbuda (on behalf of the G-77 and China),Mauritius (on behalf of the African Group),Mexico (on behalf of the Rio Group),Australia (on behalf of CANZ),the Philippines (on behalf of the Association of Southeast Asian Nations),Malaysia, Korea, Singapore, Cuba, India, Syria, Japan, Venezuela, Nicaragua, Pakistan, Russia, Argentina, and the United States. Of the 19 statements, 17 were critical of the United States. ¶4. The representative of Antigua and Barbuda called the budget a "grim situation." Mexican and Singaporean delegates emphasized that the financial situation has not changed much from previous years. The Australian representative said it was "not particularly positive," while the Filipinos and Malaysians called it a "mixed picture." �A;¶5. The representative of Antigua and Barbuda praised the Member States that have fully paid their assessments for the CMP. The Mauritian delegate welcomed the USD 756 million already contributed, and requested others to pay the remaining USD 80 million. The Japanese representative highlighted that his government made an early payment. ¶6. The representative of Antigua and Barbuda noted that significant levels remain outstanding for PKOs. The Mauritian delegate pointed out that two Member States owe 62 percent of unpaid peacekeeping assessments. The representative of Australia expressed disappointment with the grave PKO budget situation, with USD 2.9 billion outstanding and only 31 countries paid in full. Delegations from the Philippines and India also expressed concern, the latter calling UN assessments moral obligations. Kane reported that she anticipates that Secretariat debts to reimburse PKO contributors to be lower than that in May, and USD 134 million less than last year. ¶7. The representative of Antigua and Barbuda highlighted that 85 percent of ICT assessments are owed by one Member State, but the Mauritian delegate expressed encouragement that ICT financial positions remain stable. The representative of India expressed concern that the cash position of the regular budget is in a USD 66 million deficit due to special political missions and a weak USD. ¶8. Several delegations spoke out on UN reform. The Australian representative called reform "even more salient" during an international financial crisis, and stressed the importance of efforts to modernize the UN. The Japanese delegate said the Secretariat should be accountable and utilize resources efficiently. Expressing an entirely different perspective, the Nicaraguan representative said "No Member State should point the finger at management inefficiencies if it has not made its payment on time. (The United States) does not have the right to demand management reforms." The Singaporean delegate said that withholding contributions in the name of addressing the inefficiencies of the UN is "not the right way to do things." ¶9. The most persistent theme throughout the meeting was criticism of the USG for tardiness in making contributions. In emphasizing the importance of making contributions, nearly every delegation repeated the term "in full, on time, and without conditions." Although most hesitated to mention the United States by name, others dwelled on the 94 percent of arrears owed by "one Member State," "one contributor," or "the host country." Two speakers tried to invoke irony; Singapore that less developed countries usually pay their assessments on time, and Cuba that the United States provides leadership in determining methodologies for assessments. The Syrian representative speculated whether the USG is deliberately withholding its contribution. The delegation from Venezuela claimed that U.S. arrears show "a lack of commitment" and "a sly instrument of pressure, as we have seen on other occasions." The Argentine delegation was the only to refrain from commenting on the United States. In our defense, the South Korean representative expressed skepticism that the UN would go into the red, assuring the others that all Member States would make payments in time. ¶10. USDel emphasized American commitment to the UN on the scale of hundreds or millions of USD, with a recent payment exceeding USD 200 million. Interrupted by a dramatic emotional display from the Cuban delegation (during which First Secretary Jorge Cumberbatch broke Cuba's nameplate), USDel explained the reason for the delay as a difference in payment cycles between the USG and the UN. USDel indicated additional payments were planned before the end of the year. Khalilzad